B&G Foods Stock Takes a Tumble Ahead of Quarterly Report

BGS is expected to report Q4 earnings on March 2

Feb 24, 2021 at 10:08 AM
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B&G Foods, Inc. (NYSE:BGS) is an American holding company for branded foods. Its subsidiaries manufacture, sell, and distribute shelf-stable and frozen foods across the U.S., Canada, and Puerto Rico. B&G Foods’ portfolio consists of more than 50 brands. This morning, BGS was last seen down 0.9% at $31.31.

Last week B&G Foods set the date for the release of its fourth-quarter financial results. BGS intends to release the results after the market closes on Tuesday, March 2. Analysts project B&G Foods to report an earnings per share (EPS) of $0.45 in its upcoming report. Looking at recent history, B&G Foods has outperformed earnings expectations on three of its last four quarters, and came in-line with the other.

For the fourth quarter of 2019, B&G Foods met analysts’ expectations at an EPS of $0.28. For the first quarter of 2020, BGS increased its EPS to $0.46, beating expectations by a margin of $0.03. For the second quarter of 2020, B&G Foods increased its EPS to $0.71 and beat expectations by $0.10. In its most recent quarterly earnings report, BGS increased its earnings to $0.74 per share. B&G Foods also beat earnings expectations by a margin of $0.08. A positive earnings report next week could trigger B&G Foods stock jump up in price significantly.

So far in 2021, B&G Foods stock has increased 14%. In addition, BGS stock price has more than doubled over the past year and has just about tripled from its nine-year low of $10.39. However, B&G Foods stock has seen a dip in the past month, dropping 34% from its four-year high of $47.84. 

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Moreover, with a forward dividend of $1.90 and a dividend yield of 6.15%, BGS ranks on the higher end of the spectrum for dividend-paying companies. B&G Foods stock also offers an intriguing price-earnings ratio of 15.63 and a forward price-earnings ratio of 13.39. Furthermore, B&G Foods has generated some impressive growth in 2020. The company increased its revenues by roughly $270 million over the past year. BGS also added more than $50 million to its net profits.

On the flipside, B&G Foods doesn’t necessarily have the most consistent growth rate, with revenues and net income often fluctuating throughout the years. Additionally, its balance sheet holds an outstanding amount of debt, totaling $1.84 billion. In contrast, B&G Foods only has $56.97 million in cash and cash equivalents. Overall, BGS is on the riskier side of dividend plays. However, it does offer a decent valuation, as well as a high dividend yield, in exchange for that risk.

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